Avoiding fees is one of the most important factors in investing success and all firms are not created equal. Most firms, with Edward Jones being among the worst, are designed to separate unknowing clients from their money with outrageously high fees. A very few, like Fidelity and Schwab, aim to attract the clients who understand that fees lower clients’ investment returns. One, alone, Vanguard, is a cooperative owned by the clients themselves and, naturally, it has the consistently lowest fees in the industry. It also does not have the expensive offices the others have and everything is done over the phone.
Uniquely, your TSP has even lower fees than Vanguard, so putting everything in the Lifecycle Income Fund is just fine, as my own wife has. TSP will calculate the sustainable payment you’ll get each month and simply send it to you.
Your Edward Jones broker will likely insult your intelligence, stamp and holler and say he can outperform TSP, as he is trained to do, because he has a conflict of interest, he thrives on people’s ignorance and not using him denies him his huge fees. However, virtually everyone on this board of experienced investors will tell you that going with Edward Jones is a huge mistake you will regret.
I feel for you having to make a hugely important decision without enough knowledge. To keep it simple as you learn from this board and other reputable sources, leave your money in the TSP. In fact, ask the TSP folks to transfer your Edward Jones money to TSP. GOOD LUCK and start reading about Vanguard and their index funds.
